Problem 24-9 Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 4%, and the market's average return was 11%. Performance is...

Extracted text: Problem 24-9 Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 4%, and the market's average return was 11%. Performance is measured using an index model regression on excess returns. Stock A Stock B Index model regression estimates 18 + 1.2(rM - rf) 28 + 0.8(IM - rf) R-square Residual standard deviation, o(e) Standard deviation of excess returns 0.683 0.49 12.1% 20.98 23.48 28.58 a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Stock A Stock B Alpha Information ratio i. 1.0000 % 2.0000 ii. 0.0826 0.0957 ii. Sharpe ratio 0.5042 * 0.3228 iv. Treynor measure 9.8333 O % 11.5000